Phoenix commercial Real estate is a constantly moving and changing. U.S. Senator Johnny Isakson once said, “In the real estate business you learn more about people, and you learn more about community issues, you learn more about life, you learn more about the impact of government, probably than any other profession that I know of.“With that in mind, you can learn a lot about the community in which you live by paying attention to the patterns and shifts within that market.
According to a Q1 Research and Forecast report by Collier’s, Phoenix commercial real estate is showing a decrease in vacancy rates for office properties, sitting at 18.8% at the end of the first quarter, which is down from 20.4% a year ago. More than 70% of the valley is recording decreases in the vacancy rates, with the biggest decreases showing up in the East Valley.
Large financial and insurance companies are helping to fuel the decrease in vacancies with State Farm and Vanguard, moving into over 300,000 square feet worth of office space.
With vacancies steadily improving, landlords are also beginning to increase rent. Overall, rent asking prices have increased 4.9% over the year and are averaged at about $20.61 per square foot. The Collier’s report states that “Rents are expected to continue to push higher through the remainder of this year, with more rapid gains likely in 2015.”
The report goes on to say that the current trend in Phoenix is for businesses to occupy already existing office space as the completion of new spaces is slow, which contributed to the lowering trend of vacancies. However, this will change as State Farm will be completing a new 2.1 million square foot regional headquarters and by the numbers will show a slowing in the vacancy rate decreases.
This 19,900 square foot property is for sale by Menlo Group Commercial Real Estate. This building has multiple Class “B” office suites ranging from 1,900 to 13,000 square feet. The building features a new roof and elevator. The building is located near retail and has 52 free surface parking spaces available. Contact Rich Andrus or Stuart Milne at (480) 659-1777 for more information on this property.